The year 2024 marked a defining chapter in the story of global tourism and, by extension, for our company. After years of turbulence and recovery, the industry has at last reached its long-awaited inflection point.
According to the United Nations World Tourism Organization (UNWTO), international arrivals closed the year at approximately 1.40 billion, restoring the sector to its pre-pandemic baseline. This milestone, coupled with robust international spending and expanded flight capacities, reaffirms that travel has reestablished itself beyond luxury or aspirational status—it has emerged as a vital pillar of cultural exchange and economic vitality.
At home, the Philippines wrote its own history in 2024. The Department of Tourism reported receipts of PHP 760.50 billion, the highest ever recorded, with foreign tourist arrivals reaching 5.95 million. While this remains below the 2019 peak in absolute arrivals, the qualitative transformation is unmistakable: visitors are staying longer, spending more, and engaging in deeper, more integrated experiences.
The shift from volume-driven growth to value-driven engagement has profound implications for the future of hospitality investment. It is this very trajectory—prioritizing integrated, sustainable, and premium offerings—that Waterfront Philippines, Inc. (WPI) has deliberately pursued.
Against this backdrop of optimism, our group navigated a year marked by both progress and constraint. Consolidated revenues grew 8.2% to PHP 1.95 billion, from PHP 1.80 billion in 2023. This topline expansion was driven principally by a 15.5% increase in Rooms revenue, which rose to PHP 545.90 million from PHP 472.47 million. Food and Beverage (F&B) operations followed suit, growing 9.3% to PHP 736.17 million versus PHP 673.54 million in the prior year. Rent and related income posted a modest 1.2% increase to PHP 625.69 million, while Other income rose 11.4%, underscoring operational breadth across business lines.
However, this revenue growth was tempered by significant cost escalation. Operating expenses increased by 25.2% to PHP 1.43 billion from PHP 1.14 billion, reflecting the combined impact of inflationary pressures, personnel costs tied to restored occupancy levels, and energy volatility. As a result, Gross Operating Profit (GOP) contracted 21.2%, declining to PHP 520.33 million from PHP 659.95 million, with GOP margin narrowing to 27% from 37% a year earlier.
At the bottom line, WPI reported a net income after tax of PHP 1.60 billion—dramatically higher than 2023’s PHP 38.56 million. On a fundamental level, the group remains in a measured trajectory of recovery and reinvestment, with pre-pandemic levels of performance not yet fully recaptured.
Property-Level Insights
At the property level, 2024 was a year of measured progress for Waterfront Philippines, Inc. (WPI). Against a backdrop of global uncertainty, inflationary pressures, and uneven regional tourism recovery, the company continued to demonstrate resilience and adaptability. Revenue growth was tempered by rising operating costs and softer-than-expected demand in certain markets, yet WPI maintained its commitment to service excellence, portfolio strength, and disciplined financial stewardship.
Waterfront Cebu City Hotel & Casino (WCCCHI) delivered gross revenues of PHP 1.20 billion, up 2% from PHP 1.18 billion in 2023. Growth was broad-based: rooms revenue climbed 4% to PHP 288.09 million, rent income advanced slightly at 0.49% to PHP 420.09 million, and F&B revenue grew 3% to PHP 488.09 million, reflecting renewed strength in convention and auxiliary services. Yet costs rose considerably than revenues, with a 7% increase in expenses leading to a 4% decline in GOP to PHP 520.50 million compared to previous year of PHP 540.99 million. Net income contracted 20% from GOP at PHP 240.93 million, underscoring the margin pressures of inflation, energy, and payroll adjustments despite healthy topline.
Waterfront Mactan Hotel & Casino (WMCHI)
achieved PHP 386.04 million of gross revenue, a 6% increase from PHP 362.50 million year-on-year. Room revenues increased by 14% to PHP 110.76 million, Rent and related income rose by 2% to PHP 200.49 million, and Food and Beverage revenues increased by 5% to PHP 56.70 million. However, a 24% surge in operating expenses led to a 7% decline in GOP to PHP 185.20 million. Net income declined by 58% to PHP 44.76 million, mirroring Cebu’s cost-driven margin compression.
Waterfront Insular Hotel Davao (DIHCI)
reinforced its position as the group’s best-performing property in relative terms. Gross revenue increased 3% to PHP 258.59 million from PHP 250.09 million. Rooms revenue rose 9% to PHP 106.81 million, while Rent surged 46% to PHP 3.09 million. Food and Beverage revenue slipped modestly by 1% to PHP 141.40 million, reflecting market variability, and Other revenue increased by 9% to PHP 7.29 million. The GOP improved by 10% to PHP 45.80 million, while net income surged 137% to PHP 11.62 million, highlighting disciplined cost management and a favorable revenue mix. Personnel costs, however, rose 59% to PHP 38.11 million, driven by mandated and negotiated wage adjustments.
In 2024, our portfolio was strengthened with the integration of the Grand Ilocandia Resort and Development Incorporated or GIRDI. As a newly integrated property and undergoing alignment to Waterfront standards and quality benchmarks, the hotel makes a positive contribution for the year at PHP 90.69 million in revenues with Rooms at PHP 40.24 million, Food and Beverage at PHP 49.25 million, Rental and related income at PHP 355.64 thousand, and PHP 845.64 thousand from Other sources, showing strong potential as it moves toward full launch.
Acesite (Manila) remained in pre-operational status due to ongoing reconstruction. Expenses reached PHP 97 million, a 53% increase year-over-year, as structural and personnel costs continued to rise. While revenues remain absent, the redevelopment trajectory is clear: Phase I, encompassing lobby, select F&B outlets, and casino areas, is targeted for completion by Q1 2026; Phase II by Q3 2026; and Phase III by Q1 2027.
Taken together, these results illustrate both the resilience and the ability of WPI to recalibrate. The resurgence of tourism globally and domestically provides a powerful tailwind. Yet the challenge of rising costs, competitive segmentation, and legacy infrastructure underscores the urgency of disciplined reinvention.
WPI’s Strategic Focus for 2025
As we navigate 2025, our strategy sharpens. The past year has proven that resilience is only the beginning; what defines WPI is our ability to transform strength into direction. We are setting our sights on initiatives that will not only drive financial performance but also uphold the company’s continuing commitment to elevate service quality.
Completing Development Pipeline. Foremost among these is completing our projects in the pipeline, such the landmark Manila property — a project that represents more than an expansion of our footprint. It embodies Filipino hospitality executed at world-class standards. Once complete, it will serve as both a gateway and a showcase, linking the nation’s capital with global tourism flows, while elevating the WPI brand to new heights.
To enhance service quality, projects across our hotels are being reviewed and prioritized for approval, further improving facilities to align with guest convenience and experience. These initiatives reflect our commitment to ensuring that every stay meets global standards of comfort, functionality, and hospitality. Investments will focus on physical enhancements to rooms, public areas, and amenities, as well as innovations that support seamless service, operational efficiency, and sustainability. The Company affirms its intent to provide memorable guest experiences while strengthening its long-term market position.
Consistent effort in sustaining topline growth. WPI’s market strength rests on breadth and depth, but true growth comes from relevance. This year, we are deepening our presence in premium segments, with particular focus on Meetings, Incentives, Conventions, and Exhibitions (MICE). While government-related MICE business remains robust, we continue to attract other groups from private organizations, civic groups, and the corporate sector. At the same time, we are capitalizing on the rising demand for experiential tourism, the increasing mobility of our international travel wholesalers, and the expanding online market. These markets are high-value, resilient, and aligned with WPI’s core strengths, enabling us not only to sustain leadership in scale but also to maintain a distinct position as the preferred choice for this type of market, offering premium experiences in Philippine hospitality.
Aligning cost discipline with revenue ambition. Lastly, a sustainable business is one that balances drive with discipline. In 2025, WPI will continue to protect profitability through firm cost controls while expanding capacity where it creates the greatest long-term value. This alignment of efficiency and ambition ensures that every investment translates into stronger financial performance today and enduring competitiveness tomorrow.
Together, these priorities — completing our pipeline, targeting premium growth, and balancing costs with expansion — form a clear trajectory for success. The investment thesis across the group is maturing—from post-pandemic survival to sustainable growth. With internal efficiencies, external partnerships, and a reinvigorated hospitality market, WPI enters 2025, strengthening its position as a formidable Filipino-owned hotel chain. As a company, we are determined to redefine hospitality in the Philippines and stand proudly alongside the best the world has to offer.
SERGIO R. ORTIZ-LUIS JR.
Waterfront Philippines, Inc, Chairman